This page explains what it means when a UK patent is endorsed “Licence of Right.” Whether the patent is owned by you or someone else, this endorsement can have significant implications. Similar provisions apply in certain other countries around the world. At the time of writing this includes several European countries (including Germany) and China. Although this endorsement is not always appropriate, at the time of writing, several thousand UK patents have been endorsed in this way.
What is a “Licence of Right”?
In the UK, a patent owner can request that their patent is officially marked that licences are available as of right. This means that anyone who wants a licence under the patent must be granted one by the proprietor. Such licences are ordinary, commercial agreements with terms negotiated between the patent owner and the licensee. However, if the parties cannot agree on the terms, they can refer to the matter to the UK Intellectual Property Office (UKIPO) and they will decide an appropriate licence on what they consider to be terms which are fair to both parties.
If Your Patent is Endorsed “Licence of Right”
The main advantage is that the annual renewal fees (which can make up a large part of the overall patent costs) are reduced by 50%. However, another occasionally overlooked advantage is that this endorsement signals your willingness to license your patent to interested parties – which can in turn attract potential licensees.
Practical Considerations
To apply for this endorsement a straightforward request needs to be filed at the UKIPO for the relevant patents. The UKIPO checks to ensure there are no conflicts (such as an existing registered exclusive licence on the patent). If everything is in order, the endorsement will be noted on the official public register.
Once requested, it will take at least ten days for the endorsement to take effect; therefore, to benefit from reduced renewal fees in time it is best to apply at least a month before the next renewal fee is due.
Keep in mind that, while there may not be immediate savings in the first year (due to the cost of filing the requests), the overall reduction in renewal fees each year can lead to significant savings over time.
If Someone Else’s Patent is Endorsed “Licence of Right”
If a patent you’re interested in is marked “Licence of Right,” you can approach the owner for a licence. The terms—such as royalty rates and duration—can be negotiated as part of a regular commercial agreement. If no agreement is reached, either party can ask the UKIPO to determine fair terms.
Removal of the Endorsement
If a patent owner decides to remove the “Licence of Right” endorsement from their patent, they can only do so with the agreement of all existing licensees. Once removed, any savings made on reduced renewal fees must be repaid.
Further Information
The UKIPO maintains a searchable database of all patents endorsed in this way. You can access this database on the UKIPO website.